The utility's general manager for 32 years until 2008, Fuelberg was accused of managing secret PEC payments to his brother, lobbyist Curtis Fuelberg, and Lampasas attorney Bill Price, son of former PEC Board Member E.B Price.

On the stand, Bennie Fuelberg admitted asking then-PEC General Counsel Walter Demond in 1996 to hire his brother through Demond's law firm, Clark, Thomas & Winters, and secretly bill PEC $5,000 a month for Curtis Fuelberg's work as a consultant. Besides avoiding the appearance of nepotism, the defendant said he wanted to maintain good relations with then-Board President Bud Burnett, who was reportedly ineffective as the PEC's paid legislative liaison.

Fuelberg said he also suggested in 2003 that Demond hire Bill Price, but had no intention of having the PEC pay Price's $2,000 monthly retainer.

In closing arguments Thursday, Gunter distanced Fuelberg from the actions of Demond, who is awaiting trial on similar charges. Gunter said Fuelberg did not know that Demond had routinely inflated the PEC's monthly legal bills between 2004 and 2007, markups totaling $257,155, apparently to cover the pay of Curtis Fuelberg and Price. Gunter also told jurors that Curtis Fuelberg's consulting role benefited the PEC by keeping his brother informed on legislation.

“He had the authority to hire anybody he wanted to hire,” said Gunter, citing former PEC board members' testimony that Fuelberg should have told them of hiring his brother, but hadn't overstepped his authority.

Prosecutors say Fuelberg violated PEC rules — and the law — by falsifying records, deceiving the board and launching the secret scheme that benefited Curtis Fuelberg at the expense of the PEC.

He cited Fuelberg's admission that he knowingly tendered inaccurate bills to the board for approval, then signed the checks that funneled $630,000 in PEC funds to his brother from 1996 to 2007.

Bill Price testified to performing no work for the PEC despite receiving $86,000 from 2003 to 2007, Nichols noted, and no records were introduced at trial to reflect any work by Curtis Fuelberg for PEC.

“What we have here is a man who got too much power, had too much control over funds that weren't his, and he used that power to enrich his brother and to curry favor,” Nichols said.

Larry Landaker, the co-op's current board president, lauded the verdict and said the organization today is fully transparent and open.

“Mr. Fuelberg's era now has passed,” Landaker said.

Board members are elected, where previously Fuelberg appointed them. Meetings are open to the public and can be streamed over the Internet.

Ernest Altgelt, a PEC ratepayer who attended the trial, faulted the state for a flawed prosecution of the case he calls “the Enron of the Hill Country.”

“The real story is who's not on trial,” said Altgelt, calling for indictments of past PEC board members “who let Bennie Fuelberg do anything he wanted.”